Red flags in U.S. data will justify ‘insurance’ interest rate cuts from the Fed next year, says UBS

Employment data released this week showing underlying weakness in America’s jobs market may be the foundation for new interest rate cuts from the Fed early next year, according to UBS.

The release from the U.S. Bureau of Labor Statistics yesterday, delayed as a result of the government shutdown, showed nonfarm payroll employment added just 64,000 jobs in November, relatively unchanged from April. Meanwhile, the unemployment rate continued its steady climb higher in the latter part of this year...